Maharashtra Sadan Scam: Chamankar brothers get relief as Bombay HC quashes PMLA case linked to Chhagan Bhujbal

In a major relief to developers Krishna and Prasanna Chamankar, prime accused in the alleged Maharashtra Sadan scam linked to Maharashtra Minister and Nationalist Congress Party (NCP) veteran Chhagan Bhujbal, the Bombay High Court on Tuesday (September 16, 2025) quashed a money-laundering case lodged against them by the Enforcement Directorate (ED). 

A Division Bench of Justices A.S. Gadkari and Rajesh S. Patil allowed a writ petition filed by the Chamankar brothers and their firm, K.S. Chamankar Enterprises, setting aside the charge sheet in PMLA case from 2016. The case stemmed from ED’s Enforcement Case Information Reports (ECIRs) registered in 2015 following an Anti-Corruption Bureau (ACB) probe into irregularities in construction contracts awarded during Mr. Bhujbal’s tenure as Public Works Department (PWD) Minister.  

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The scam allegations arose from the awarding of contracts for construction of the Maharashtra Sadan in New Delhi, the High Mount Rest House in Mumbai, and buildings for the Regional Transport Office (RTO). The Chamankar firm was accused of fraudulently securing these projects in collusion with Mr. Bhujbal, leading to registration of an ACB FIR in 2015. The ED later initiated money-laundering proceedings under the PMLA. 

However, on July 31, 2021, a special ACB court discharged the Chamankars from the predicate offence, holding there was no material to establish wrongdoing. The trial court recorded that the firm had executed the projects “as per the contract.” Crucially, this discharge order was never appealed by the prosecution and thus attained finality. 

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Senior counsel for the Chamankars, advocate Shreeyash Lalit submitted that once they were discharged of the scheduled (predicate) offence, no prosecution could continue under the PMLA. They relied on the Supreme Court’s authoritative ruling in Vijay Madanlal Choudhary vs. Union of India, which held that money-laundering charges cannot survive once the base offence is quashed or all accused are acquitted. 

The ED, represented by advocate Manisha Jagtap, opposed the plea, contending that PMLA prosecution could still continue even if the predicate offence was quashed. They cited rulings, including the Jammu and Kashmir High Court’s Niket Kansal judgment and the Supreme Court’s decision in Pavana Dibbur vs. Directorate of Enforcement. 

Rejecting ED’s contentions, the High Court held that the Chamankars were entitled to the benefit of discharge in the main case.  

“In view thereof, according to us, the conclusion enumerated by the Hon’ble Supreme Court in para No.382.8 in the case of Vijay Madanlal Choudhary squarely applies to the Petitioners and therefore the ECIR and the charge sheet filed thereof, registered by Respondent No.2 qua the Petitioners, deserves to be quashed and set aside,” the order said. The Bench thus quashed the money-laundering case and allowed the petition in terms of the relief sought.